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Why AppFolio (APPF) Dipped More Than Broader Market Today

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AppFolio (APPF - Free Report) closed at $225.85 in the latest trading session, marking a -3.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.

Heading into today, shares of the property management software maker had gained 0.54% over the past month, outpacing the Computer and Technology sector's loss of 1% and lagging the S&P 500's gain of 1.19%.

Market participants will be closely following the financial results of AppFolio in its upcoming release. It is anticipated that the company will report an EPS of $1.22, marking a 32.61% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $246.09 million, up 20.83% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.12 per share and a revenue of $948.7 million, indicating changes of +17.16% and 0%, respectively, from the former year.

Any recent changes to analyst estimates for AppFolio should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AppFolio is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, AppFolio is presently trading at a Forward P/E ratio of 37.43. This signifies a premium in comparison to the average Forward P/E of 25 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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